Noida Special Economic Zone Authority vs Manish Agarwal & Ors

Bench: 2 — Abhay S. Oka, Augustine George Masih

In Brief

NOIDA Special Economic Zone Authority sought full payment of its admitted claim of INR 6.29 Crores against Shree Bhoomika International Limited (a defaulting sub-lessee of SEZ land). The NCLT and NCLAT approved a Resolution Plan allocating only INR 50 Lakhs to the Appellant. The Supreme Court held that: (1) valuation is a factual matter not reviewable if supported by evidence; (2) the Committee of Creditors' financial decisions are matters of commercial wisdom and non-justiciable; (3) IBC 2016 overrides conflicting provisions of the SEZ Act; and (4) once a Resolution Plan is approved and implemented, courts should not re-examine it absent statutory violation. The appeal was dismissed as the Appellant had already received and accepted its allocated amount.

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Insolvency and Bankruptcy Corporate Insolvency Resolution Process Resolution Plans Committee of Creditors Operational Creditors Valuation of Corporate Debtors Statutory Dues SEZ Regulations Commercial Wisdom of CoC

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